What is meant by barter?

what is meant by the term "barter' and what are the disadvantages of bartering?

Bartering is trading one thing for another. Usually used in place of exchanging $ for goods or services.
The disadvantage would be that it would be hard to place an exact and consistent value on a good or service since the thing you are trading for may be different from transaction to transaction. lets say you traded a tool for some food. Next week you need food again but you have no more tools to trade for it. What else would you trade for the same amount of food? See? it's inconsistent.

You swap one "good" for another, without
the involvement of money.

Bartering is another term for trading. "I'll give you ten chickens for your goat.". The biggest disadvantage is that you may not know what your possessions are worth and make a bad trade.

Barter is a type of trade that doesn't use any medium of exchange, in which goods or services are exchanged for other goods and/or services. It can be bilateral or multilateral as trade.

Barter and money are different means of balancing an economic exchange. Barter is used in societies where no monetary system exists. When there is one, it is also used, especially in economies suffering from a very unstable currency (as when hyperinflation hits).

Contents
1 Transaction issues
2 History of barter
3 In finance
4 Swapping
5 Nonstandard uses of the word "barter"
6 See also
7 External links

Transaction issues
Why was it done?

A transaction is possible when coincidence of wants of economic actors enables an exchange cycle between their bids: each party must be able to supply something another party desires.
Some entities develop a system of intermediaries who can store, trade, and warehouse commodities, but who may suffer economic risk.
Others develop a system with a virtual value unit ("barter dollars," or "trade credits," for example) to measure and balance exchanges, very similar to a monetary system.
Multilateral barter is more complex to settle but allows trades that would not be possible with bilateral barter. However with the use of a singular platform - like a barter exchange, bartering amongst businesses is easily facilitated, even if the barter trade is done across borders.

History of barter
To organize production and to distribute goods and services among their populations, many pre-capitalist or pre-market economies relied on tradition, top-down command, or community democracy instead of market exchange organised using barter. Relations of reciprocity and/or redistribution substituted for market exchange. Trade and barter were primarily reserved for trade between communities or countries. It is also used when the monetary system failed to measure the economic value of goods.

Barter becomes more and more difficult as people become dispossessed of the means of production of widely-needed goods. For example, if money were to be severely devalued in the United States, most people would have little of value to trade for food (since the farmer can only use so many cars, etc.)

It is used on important transactions between firms or countries to exchange commodities, when monetary constraints are too expensive for the economic actors.

A well-known example of multilateral trade is the triangular trade.

On the west coast of the United States the Beyond Barter organization extends the concept to a system based on free sharing of services. Although there's no attempt to balance contributions in individual transactions, controls ensure that members are not overburdened.

Money used to be considered as simpler for small trades; but use of the Web has changed that perception, especially for Swapping.

In finance
In finance, the word "barter" is used when corporations trade with each other using non-money or "near-money" financial assets, such as U.S. Treasury bills.

Corporate Barter

Corporate Barter entails the use of a currency unit called a "trade-credit". That which the trade-credit represents, must be known and guaranteed (contractually) as a deliverable in order to eliminate ambiguity and risk. Trade-credits are redeemed with cash much as a consumer might use a coupon toward desired goods in a supermarket.

Corporate Barter can be a powerful financial implement used to provide full recovery of value to an asset with an impairment in values (book value to market value). In a well constructed barter transaction, Company A receives full book value for an impaired asset (x), in exchange for another asset (y) which Company B owns. The asset (y) is typically something (acquired capacities in commonly purchased goods or services) which Company B owns, which company A intends to purchase during the course of day-to-day business. Examples are things such as print, shipping, packaging, travel, etc. The result is a full recovery in value for asset-x for Company A by the conclusion of transaction term.

Often maligned due to shaky beginnings, todays barter transactions have come along way. Many companies have done, and currently engage in successful Corporate Barter transactions. Practices such as requesting references help to significantly reduce risk.

Swapping
Swapping is the increasingly prevalent informal bartering system in which participants in Internet communities trade items of comparable value on a trust basis.

While swapping is an excellent way to find and obtain items that are inexpensive, it relies upon honesty. A dishonest participant might arrange a swap, and then never complete their end of the transaction, thus getting something for nothing. This practice is called swaplifting,[citation needed] a pun on shoplifting. The victim's recourse is often limited to shunning the swaplifter, or taking him to small claims court.

Complex business models based on the concept of barter is today possible since the advent of Web 2.0 technologies. LicenseBarter[1] - a barter platform for DEPB / DFRC licenses - is a good example for B2B barter.

[edit] Nonstandard uses of the word "barter"
As of 2007, it is popular (especially on UK daytime television) to use the word "barter" in place of "haggle".[citation needed] To Buy Or Not To Buy uses the word in one of their catchphrases: "Will you barter or scarper?" It is commonly understood that the guests on the show will be paying solely with money and not, for example, offering them part exchange on their A reg Ford Cortina.

Its what you spread on your sandwiches when you've run out of margarine.

trading..it's usually does not cost money you get services for services or thing for things

Barter is a system of trtading goods or services for like worth items or services. The problem with bartering is the fact that you are not guaranteed to get a fair market price. In other words, you may pay more than the next guy if you are not savvy with the worth the person you are trading holds for what you have to trade.

getting the best offer u can- like haggling

barter means to trade

i guess a disadv. would be that you could lose on a sale if the item has a different sales price to each person

its when you trade one thing of a certain value for another. But you could always end up with something of lesser value

bartering is like trading

barter, if you mean social studies, means like to trade

Bartering is when you have a talent and exchange it with someonelse's talent. Like a dentist would do dental work for some tax work or something like that. The disadvantages would be if you think your giving more then your getting.

Bartering is trading goods or services for something you want, instead of using money. A disadvantage can be not getting an equal value for the value you gave.

NEGOCIATION you try to negociate a price down the seller will try to negociate up

to try to haggle for a lower price /seller tries to haggle to keep the price as high as possible.

Disadvantages is loosing oyour sense of pride, you need to beg to lower the price, demanding it to be lowered wont do anything.

Bartering is usually used to mean bargaining or haggelling. The disadvantage is that it is an annoying thing to have to do.

Barter is when we exchange stuff of value where no money changes hands.

Example ... I visit your home and fix your computer.
Before I leave, you fix me a very tasty home cooked meal.
We are both very pleased with the gifts we got from each other.
There's no paperwork to fill out, not taxes, no records of our actions.
If we hug etc. that is also exhanging something we value, but no money changes hands.

Disadvantage can be if one of us feels like we are giving more value than we are getting, and not happy about it.
Another disadvantage can be the time it takes us to reach a deal we goth can agree upon ... much simpler if there is a fixed price, slect what we want, pay the price, and leave.

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